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American Vanguard Corp.$14.99($.40)(2.60%)

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 American Vanguard Reports Fourth Quarter & Full Year 2015 Results
   Tuesday, March 01, 2016 4:10:00 PM ET

American Vanguard Corporation (AVD ) today announced financial results for the fourth quarter and full year ended December 31, 2015.

Fiscal 2015 Fourth Quarter Financial Highlights - versus Fiscal 2014 Fourth Quarter:

-- Net sales were $84.0 million in Q4 2015 compared to $77.6 million in Q4 2014.

-- Net income was $3.0 million in Q4 2015 compared to $1.8 million in Q4 2014.

-- Earnings per diluted share were $0.10 in Q4 2015 versus $0.06 in Q4 2014.

Fiscal 2015 Financial Highlights - versus Fiscal 2014:

-- Net sales were $289.4 million in FY 2015 compared to $298.6 million in FY 2014.

-- Net income was $6.6 million in FY 2015 compared to $4.8 million in FY 2014.

-- Earnings per diluted share were $0.23 in FY 2015 versus $0.17 in FY 2014.

Eric Wintemute, Chairman and CEO of American Vanguard, stated: "Our performance in 2015 reflects continued financial discipline in the face of difficult industry conditions. Low crop commodity prices have led to reduced farmer/grower profitability and cautious purchasing of all crop inputs, including crop protection products. Despite these market conditions, during 2015, American Vanguard recorded net sales only slightly below those of the prior year, maintained a steady level of business in many markets and generated improved profitability overall."

Mr. Wintemute continued: "Our efforts to control working capital, manage manufacturing costs and reduce operating expenses have led to greater operating efficiency. As a result, we have experienced significant inventory reductions, improved cash generation and have reduced our debt, even while completing two acquisitions that should serve to strengthen our international business."

Mr. Wintemute concluded: "While the Ag market prospects for 2016 remain challenging, American Vanguard is well-positioned, in a consolidating industry, to pursue its three main objectives: improving market access through additional product acquisitions and collaborative alliances; advancing technological innovation; and driving operational excellence. We believe that these will be the keys to our success and look forward to keeping our investors well informed as we progress in 2016."

Conference Call

Eric Wintemute, Chairman & CEO, Bob Trogele, EVP & COO and David T. Johnson, VP & CFO, will conduct a conference call focusing on the financial results at 4:30 pm ET / 1:30 pm PT on Tuesday, March 1, 2016. Interested parties may participate in the call by dialing (201) 493-6744. Please call in 10 minutes before the call is scheduled to begin, and ask for the American Vanguard call. The conference call will also be webcast live via the News and Media section of the Company’s web site at www.american-vanguard.com. To listen to the live webcast, go to the web site at least 15 minutes early to register, download and install any necessary audio software. If you are unable to listen live, the conference call will be archived on the Company’s web site.

About American Vanguard

American Vanguard Corporation is a diversified specialty and agricultural products company that develops and markets products for crop protection and management, turf and ornamentals management and public and animal health. American Vanguard is included on the Russell 2000(R) and Russell 3000(R) Indexes and the Standard & Poor’s Small Cap 600 Index. To learn more about American Vanguard, please reference the Company’s web site at www.american-vanguard.com.

The Company, from time to time, may discuss forward-looking information. Except for the historical information contained in this release, all forward-looking statements are estimates by the Company’s management and are subject to various risks and uncertainties that may cause results to differ from management’s current expectations. Such factors include weather conditions, changes in regulatory policy and other risks as detailed from time-to-time in the Company’s SEC reports and filings. All forward-looking statements, if any, in this release represent the Company’s judgment as of the date of this release.

 
                                                                                                                                     CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
                                                                                                                                     Years ended December 31, 2015, 2014 and 2013
                                                                                                                                                  (In thousands, except per share data)
                                                                                                                                                                                       
                                                                                                                                                            2015                                                                       2014                                                                   2013
                                                                                                                                  ---------------------------------------------------------                     --------------------------------------------------                     --------------------------------------------------
Net sales                                                                                                                                            $        289,382                                                              $ 298,634                                                              $ 381,021
Cost of sales                                                                                                                              177,480                          184,138                          209,674  
                                                                                                                                  -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                        
    Gross profit                                                                                                                                              111,902                                                                114,496                                                                171,347
Operating expenses                                                                                                                         100,378                          107,786                          115,612  
                                                                                                                                  -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                        
    Operating income                                                                                                                                           11,524                                                                  6,710                                                                 55,735
Interest expense, net                                                                                                                                           2,772                                                                  3,153                                                                  2,175
Interest capitalized                                                                                                                          (210 )                                               (87 )                                              (274 )
                                                                                                                                  -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                        
    Income before provision for income taxes and loss on equity                                                                                                 8,962                                                                  3,644                                                                 53,834
    investment
Income taxes expense (benefit)                                                                                                               2,009                             (451 )                                            18,916  
                                                                                                                                  -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                        
    Income before loss on equity investment                                                                                                                     6,953                                                                  4,095                                                                 34,918
Less net loss from equity method investment                                                                                                   (636 )                                               (29 )                                              (986 )
                                                                                                                                  -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                        
    Net income                                                                                                                                                  6,317                                                                  4,066                                                                 33,932
Add back net loss attributable to non-controlling interest                                                                                     274                              775                              517  
                                                                                                                                  -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                        
Net income attributable to American Vanguard                                                                                                         $          6,591                                           $   4,841                                           $  34,449  
                                                                                                                                  -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                        
Change in fair value of interest rate swaps                                                                                                            --                                                                    340                                                                    388
Foreign currency translation adjustment                                                                                                     (1,571 )                                            (1,262 )                                               326  
                                                                                                                                  -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                        
    Comprehensive income                                                                                                                             $          5,020                                           $   3,919                                           $  35,163  
                                                                                                                                  ==================== ============== ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                        
Earnings per common share--basic                                                                                                         $            .23                                           $     .17                                           $    1.22  
                                                                                                                                  ==================== ============== ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                        
Earnings per common share--assuming dilution                                                                                             $            .23                                           $     .17                                           $    1.19  
                                                                                                                                  ==================== ============== ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                        
Weighted average shares outstanding--basic                                                                                      28,673                           28,436                           28,301  
                                                                                                                                  ==================== ============== ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                        
Weighted average shares outstanding--assuming dilution                                                                          29,237                           28,912                           28,899  
                                                                                                                                  ==================== ============== ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                        
 
                                                                                                                                 CONSOLIDATED BALANCE SHEETS
                                                                                                                        December 31, 2015 and 2014
                                                                                                                              (In thousands, except share data)
                                                                                                                                                       
                                                                                                                                                                                2015                                                                          2014
                                                                                                                                                      ---------------------------------------------------------                     ---------------------------------------------------------
                                        Assets
Current assets:
    Cash and cash equivalents                                                                                                                                            $          5,524                                                              $          4,885
    Receivables:
         Trade, net of allowance for doubtful accounts of $423 and $166,                                                                                                           72,835                                                                        86,027
         respectively
         Other                                                                                                                                                   2,554                                   2,396  
                                                                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                     
                                                                                                                                                                75,389                                  88,423  
                                                                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                     
    Inventories                                                                                                                                                                   136,477                                                                       165,631
    Prepaid expenses                                                                                                                                                               11,172                                                                        13,415
    Income taxes receivable                                                                                                                                                           168                                                                         5,964
    Deferred income tax assets                                                                                                                                   8,101                                   8,731  
                                                                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                     
         Total current assets                                                                                                                                                     236,831                                                                       287,049
Property, plant and equipment, net                                                                                                                                                 47,972                                                                        50,026
Intangible assets, net of applicable amortization                                                                                                                                 129,160                                                                       100,211
Other assets                                                                                                                                                    29,576                                  35,035  
                                                                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                     
                                                                                                                                                                         $        443,539                                           $        472,321  
                                                                                                                                                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                     
            Liabilities and Stockholders’ Equity
Current liabilities:
    Current installments of other notes payable                                                                                                                          $             55                                                              $             71
    Current installments of other liabilities                                                                                                                                         514                                                                         1,357
    Accounts payable                                                                                                                                                               15,343                                                                        20,411
    Deferred revenue                                                                                                                                                                8,888                                                                           898
    Accrued program costs                                                                                                                                                          44,371                                                                        52,546
    Accrued expenses and other payables                                                                                                                          7,111                                   5,962  
                                                                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                     
         Total current liabilities                                                                                                                                                 76,282                                                                        81,245
Long-term debt and other notes payable, excluding current                                                                                                                          68,321                                                                        98,605
installments
Other liabilities, excluding current installments                                                                                                                                   3,054                                                                         3,309
Deferred income tax liabilities                                                                                                                                 27,556                                  28,159  
                                                                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                     
         Total liabilities                                                                                                                                     175,213                                 211,318  
                                                                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                     
Commitments and contingent liabilities
Stockholders’ equity:
    Preferred stock, $.10 par value per share; authorized 400,000                                                                                                          --                                                                --
    shares; none issued
    Common stock, $.10 par value per share; authorized 40,000,000                                                                                                                   3,164                                                                         3,156
    shares; issued 31,638,225 shares in 2015 and 31,550,477 shares in
    2014
    Additional paid-in capital                                                                                                                                                     68,534                                                                        66,232
    Accumulated other comprehensive loss                                                                                                                                           (3,541 )                                                                      (1,970 )
    Retained earnings                                                                                                                                          208,507                                 202,488  
                                                                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                     
                                                                                                                                                                                  276,664                                                                       269,906
    Less treasury stock at cost, 2,450,634 shares in 2015 and in 2014                                                                                           (8,269 )                                                   (8,269 )
                                                                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                     
         American Vanguard Corporation stockholders’ equity                                                                                            268,395                                                                       261,637
    Non-controlling interest                                                                                                                                       (69 )                                                     (634 )
                                                                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                     
         Total stockholders’ equity                                                                                                 268,326                                 261,003  
                                                                                                                                                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                     
                                                                                                                                                                         $        443,539                                           $        472,321  
                                                                                                                                                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                         
 
                                                                                                                                                             CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                                                                Years ended December 31, 2015, 2014 and 2013
                                                                                                                                                                        (In thousands)
                                                                                                                                                                                                     
                                                                                                                                                                   2015                                                                          2014                                                                          2013
                                                                                                                                         ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
Increase cash
Cash flows from operating activities:
    Net income                                                                                                                                              $          6,317                                                              $          4,066                                                              $         33,932
    Adjustments to reconcile net income to net cash provided by (used
    in) operating activities:
    Depreciation and amortization of fixed and intangible assets                                                                                                      16,474                                                                        16,332                                                                        14,845
    Amortization of other long term assets                                                                                                                             5,275                                                                         5,811                                                                         4,598
    Amortization of discounted liabilities                                                                                                                               140                                                                           324                                                                           174
    Stock-based compensation                                                                                                                                           3,881                                                                         4,153                                                                         3,819
    Tax effect from the share based compensation                                                                                                                         (23 )                                                                        (300 )                                                                        (440 )
    Increase in deferred income taxes                                                                                                                                     27                                                                         2,619                                                                         2,523
    Operating loss from equity method investment                                                                                                                         629                                                                           983                                                                           986
    Loss (gain) from dilution of equity method investment                                                                                                                  7                                                                          (954 )                                                              --
    Changes in assets and liabilities associated with operations:
         Decrease (increase) in net receivables                                                                                                                       13,034                                                                       (13,471 )                                                                       2,351
         Decrease (increase) in inventories                                                                                                                           29,154                                                                       (25,801 )                                                                     (51,879 )
         Decrease (increase) in income tax receivable/payable, net                                                                                                     4,872                                                                         4,424                                                                       (10,961 )
         Decrease (increase) in prepaid expenses and other assets                                                                                                      2,082                                                                        (4,743 )                                                                     (19,733 )
         (Decrease) increase in accounts payable                                                                                                                      (5,068 )                                                                     (19,951 )                                                                       8,252
         Increase (decrease) in deferred revenue                                                                                                                       7,990                                                                        (2,890 )                                                                     (16,639 )
         (Decrease) increase in other payables, accrued program costs and                                                                          (6,223 )                                                   (4,697 )                                                   21,958  
         expenses
                                                                                                                                         -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                      
              Net cash provided by (used in) operating activities                                                                                  78,568                                 (34,095 )                                                   (6,214 )
                                                                                                                                         -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                      
Cash flows from investing activities:
    Capital expenditures                                                                                                                                              (6,899 )                                                                      (7,180 )                                                                     (15,260 )
    Investment                                                                                                                                                          (125 )                                                                        (500 )                                                                      (3,687 )
    Acquisitions of intangible assets                                                                                                             (36,667 )                                           --                          --  
                                                                                                                                         -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                      
              Net cash used in investing activities                                                                                               (43,691 )                                                   (7,680 )                                                  (18,947 )
                                                                                                                                         -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                      
Cash flows from financing activities:
    Net (payments) borrowings under line of credit agreement                                                                                                         (30,520 )                                                                      47,850                                                                        51,550
    Payments on long-term debt                                                                                                                                --                                                                --                                                                       (46,000 )
    Payment on other long-term liabilities                                                                                                                            (1,543 )                                                                      (1,756 )                                                                      (1,831 )
    Tax effect from the share based compensation                                                                                                                          23                                                                           300                                                                           440
    Decrease in other notes payable                                                                                                                           --                                                                --                                                                        (6,154 )
    Repurchases of common stock                                                                                                                               --                                                                        (1,531 )                                                                      (1,934 )
    Proceeds from the issuance of common stock (sale of stock under ESPP                                                                                                 317                                                                         1,666                                                                         1,610
    and exercise of stock options)
    Non-controlling interest contribution                                                                                                                     --                                                                           299                                                                --
    Payment of cash dividends                                                                                                                      (1,141 )                                                   (5,672 )                                                   (4,804 )
                                                                                                                                         -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                      
         Net cash (used in) provided by financing activities                                                                                      (32,864 )                                                   41,156                                  (7,123 )
                                                                                                                                         -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                      
         Net increase (decrease) in cash and cash equivalents                                                                                                          2,013                                                                          (619 )                                                                     (32,284 )
Effect of exchange rate changes on cash                                                                                                                               (1,374 )                                                                      (1,176 )                                                                         488
Cash and cash equivalents at beginning of year                                                                                                      4,885                                   6,680                                  38,476  
                                                                                                                                         -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                      
Cash and cash equivalents at end of year                                                                                                                    $          5,524                                           $          4,885                                           $          6,680  
                                                                                                                                         ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                      
Supplemental cash flow information:
Cash paid (received) during the year for:
    Interest                                                                                                                                                $          2,750                                           $          2,298                                           $          1,777  
                                                                                                                                         ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                      
    Income taxes                                                                                                                                            $         (3,697 )                                                            $         (8,206 )                                                            $         25,271  
                                                                                                                                         ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160301006948r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20160301006948/en/

SOURCE: American Vanguard Corporation

Company: 
American Vanguard Corporation 
William A. Kuser, 949-260-1200 
Director of Investor Relations 
williamk@amvac-chemical.com 
or 
Investor Representative 
The Equity Group Inc. 
Lena Cati, 212-836-9611 
Lcati@equityny.com 
www.theequitygroup.com


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